ANALYZING THE IMPACT OF THE AUTHORIZED ECONOMIC OPERATOR (AEO) PROGRAM IN INDONESIA
DOI:
https://doi.org/10.31092/jpbc.v8i2.2980Abstract
This study investigated the impact of the Authorized Economic Operator (AEO) program on imports in Indonesia using the Difference-in-Differences (DiD) methodology with yearly panel data of imports at the firm level. The independent variable represents whether a firm obtains AEO status. The analysis indicates that implementing the AEO program has had a statistically significant and positive effect on imports in Indonesia. Specifically, the findings suggest that the program contributed to a substantial increase in trade volume, likely increasing total import values by 35% and improving overall trade performance. These results underscore the importance of trade facilitation programs, such as AEO, in boosting economic activity and supporting sustainable trade growth. The positive impact observed highlights the potential benefits of expanding the program to include more firms, thereby amplifying its contribution to Indonesia's trade and economic development.
References
Ballestero, M.R.M (2023). A Study of Impact of the AEO Program in Brazilian Customs. GRIPS Public Finance Policy Paper 2023.
Campos, M. L., Morini, C., Moraes, G. H. S. M. de ., & Inácio Júnior, E.. (2018). A performance model for Public-Private Partnerships: the authorized economic operator as an example. RAUSP Management Journal, 53(2), 268–279.
Den Butter, F. A. G., Liu, J., & Tan, Y.H. (2012). Using IT to engender trust in government-to-business relationships: The Authorized Economic Operator (AEO) as an example. Government Information Quarterly, 29(2), 261-274. https://doi.org/10.1016/j.giq.2011.05.004.
Directorate General of Customs and Excise (2023). Coaching Clinic
Authorized Economic Operator.
Kulchev, K. (2023). Improving the assessment of the solvency of Authorized Economic Operators in Bulgaria. World Customs Journal 17(2). https://doi.org/10.55596/001c.88463
Japan Customs & Tariff Bureau (2023). AEO program. Retrieved from https://www.customs.go.jp/english/aeo/pamphlet.pdf
Liwen Chen, & Yongfei Ma. (2021). A Study of the Role of Customs in Global Supply Chain Management and Trade Security Based on the Authorized Economic Operator System. Journal of Risk Analysis and Crisis Response, 5(2). Retrieved from https://www.jracr.com/index.php/jracr/article/view/137
Mbabazi, E. (2022). The Impact of the Authorized Economic Operator Accreditation Program on Trade Facilitation in Uganda. GRIPS Public Finance Policy Paper 2022.
OECD (2023). OECD Trade Facilitation Indicators: Monitoring facilitation reforms Up to 2023 Retrieved from: https://issuu.com/oecd.publishing/docs/oecd-trade-facilitation-update-2023
Polner, M. (2010). Compendium of authorized economic operator (AEO) programmes. WCO Research Paper,(8), 2. Retrieved from World Customs Organization and https://webfile.Customs.gov.tw/001/Upload/public/Attachment/18171538271.pdf
Polner, M. (2012). Compendium of authorized economic operator programmes. WCO Research Paper Series,(25). Retrieved from World Customs Organization and http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.696.2200&rep=rep1&type=pdf
Prasongnijjakij, P. (2017). The Effect of Authorized Economic Operator Program on Border Efficiency. GRIPS Public Finance Policy Paper 2017.
Pratama, D.H. & Everett, S. (2017), "Supply chain security initiatives: The authorized economic operator and Indonesia's experience", Journal of International Logistics and Trade, 15(1), pp. 10-18. https://doi.org/10.24006/jilt.2017.15.1.010
Redding, S. J. (2022). Trade and geography. Handbook of International Economics (Vol. 5, pp. 147-217). https://doi.org/10.1016/bs.hesint.2022.02.003
European Commission (2012). Authorized Economic Operator guidelines (TAXUD/B2/047/2011-Rev.3).
Tweddle, D. (2008). Logistic, security and compliance: the part to be played by AEOs and data management. World Customs Journal, 2(1), pp. 101-106.
Wanjiru, M.E. (2022). Impact of the AEO Program on the Importation Time in Kenya. GRIPS Public Finance Policy Paper 2022.
WCO, (2005). Framework of standards to secure and facilitate global trade. https://www.ifcba.org/sites/default/files/ctd_files/wcoframeworkfinal.pdf
WCO, (2020). Compendium of authorized economic operator programmes. Retrieved from http://www.wcoomd.org/-/media/wco/public/global/pdf/topics/facilitation/instruments-and-tools/tools/safe-package/aeo-compendium.pdf?la=en
WCO, (2021). Safe Framework of Standards (Updated). Retrieved from https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/facilitation/instruments-and-tools/tools/safe-package/safe-framework-of-standards.pdf
Wolffgang, H.M. & Natzel, J.M., (2007). The Authorized Economic Operator in the European Union, Global Trade and Customs Journal, 11(11), pp. 377-84.
Downloads
Published
How to Cite
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors can enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) before and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
